Brigham Exploration Announces Year-End 2000 Proved Reserves, Finding Costs and Financial Results.Business/Energy Editors AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--March 6, 2001 Brigham Brigham may refer to the following: Place:
tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). its year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. and finding costs, and also announced its financial results for the quarter and fiscal year ended Dec. 31, 2000. YEAR-END 2000 PROVED RESERVES AND FINDING COSTS Brigham's estimated net proved reserve volumes at Dec. 31, 2000 totaled 95 Bcfe, which represents a 14% increase from its 84 net Bcfe at year-end 1999. During 2000, Brigham added 18.4 Bcfe primarily through drilling activities in its Anadarko Basin The Anadarko Basin is one of the most prolific natural gas reserves in North America, with ultimate gas production in excess of 100 trillion cubic feet of gas.[1] External links
References 1. and Texas Gulf Coast 3-D seismic projects. Brigham's 2000 drilling program generated net proved reserve additions that replaced 279% of its 6.6 Bcfe of net volumes produced during the year. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 82% of Brigham's year-end 2000 reserve volumes are natural gas and 53% are proved developed. The present value of Brigham's estimated proved reserves, calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with SEC guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ("PV10% Value"), increased 333% to $498 million at year-end 2000 from $115 million at year-end 1999. The PV10% Value at year-end 2000 was calculated based on a Henry Hub Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC. natural gas price of $10.42 per MMBtu and a West Texas Intermediate Sweet price of $26.83 per barrel barrel: see English units of measurement. . The PV10% Value of these same reserve quantities at lower prices of $5.00 per MMBtu and $25.00 per barrel is approximately $246 million. Net capital expenditures incurred in exploration and development operations during 2000 totaled $25.3 million (including capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. G&A and interest), approximately 73% of which related to drilling activities. As a result, Brigham's average finding costs for reserves added in 2000 (including revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to prior estimates) were $1.00 per Mcfe based only on drilling expenditures and $1.38 per Mcfe based on total net capital expenditures. FOURTH QUARTER 2000 RESULTS Average net daily production volumes for the fourth quarter 2000 were 18.4 MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) , an increase of 12% from the fourth quarter 1999. Several significant drilling discoveries made by Brigham late in 2000 did not materially contribute to fourth quarter volumes, but are expected to impact the first quarter of 2001. As a result, production volumes for the month of January January: see month. 2001 are expected to average 24 MMcfe, 30% greater than average volumes for the fourth quarter of 2000. Natural gas and oil sales for the fourth quarter 2000 were $4.6 million, or a 13% increase from the same period last year. Brigham's average realized equivalent natural gas and oil sales price increased 1% in the fourth quarter 2000 as compared to the prior year quarter primarily due to 30% higher realized prices for crude oil. Cash settlements on natural gas hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. transactions of $4.3 million, or $3.63 per Mcf, negatively impacted Brigham's net realized natural gas sales price and revenues during the fourth quarter 2000, while natural gas hedging settlements of $485,000, or $0.48 per Mcf, reduced its average realized natural gas sales price and revenues during the prior year period. Lease operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the fourth quarter 2000 were $637,000, a 10% increase from the fourth quarter 1999 primarily due to higher production volumes. Net general and administrative expenses were $934,000, a 21% increase from the fourth quarter 1999 principally due to higher payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. expenses. Depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able expenses were $2.1 million ($1.28 per Mcfe), or 7% higher than the prior year quarter due to increased production volumes that were partially offset by a lower depletion rate per unit. Interest expense decreased 70% to $809,000 in the fourth quarter 2000 from $2.7 million in the prior year period as a result of reduced borrowings, lower effective interest rates and the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of certain interest obligations as a result of the refinancing Refinancing An extension and/or increase in amount of existing debt. of Brigham's senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes. Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) decreased 23% to $2.5 million in the fourth quarter 2000 from $3.3 million in the fourth quarter 1999, while operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the fourth quarter 2000 was $2.0 million ($0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), a decrease from $2.8 million ($0.19 per diluted share) for the same period in 1999. Brigham reported net income of $28.2 million ($1.74 per diluted share) for the fourth quarter 2000 compared to a net loss of $2.2 million ($0.15 per diluted share) for the prior year period. Net income for the fourth quarter of 2000 included a $32.3 million extraordinary gain on the refinancing of debt and $3.2 million in non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) related to changes in the fair market value of certain hedging contracts. Excluding extraordinary items and the non-cash change in fair market value of certain hedging contracts, the fourth quarter 2000 net loss would have been $857,000 ($0.05 per diluted share) as compared to a loss for the same period in 1999 of $2.3 million ($0.16 per diluted share). Capital costs incurred during the fourth quarter 2000 totaled $8.5 million, which included $4.5 million related to drilling, $2.2 million for land and G&G activities and $1.8 million for capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. and overhead expenses. Additionally, Brigham realized $4.0 million in proceeds from the sale of ownership in certain proprietary 3-D seismic data, which resulted in net capital costs of $4.5 million for the fourth quarter. YEAR-END 2000 RESULTS Net equivalent production volumes totaled 6.6 Bcfe (67% natural gas) for the full year 2000 compared with 6.3 net Bcfe produced in 1999, resulting in year-over-year production volume growth of 5%. Excluding volumes associated with properties sold effective June June: see month. 30, 1999, Brigham's comparable net production volumes increased by 16% in 2000. Natural gas and oil sales for 2000 totaled $19.1 million compared to $15 million last year, an increase of 28% despite Brigham's natural gas hedge position that resulted in net cash settlements of $9.4 million ($2.12 per Mcf) for the year. Brigham's average realized natural gas and oil equivalent sales price increased 21% to $2.90 per Mcfe in 2000 from $2.39 per Mcfe in the prior year. Average realized sales prices during 2000 were $1.94 per Mcf for natural gas and $29.17 per barrel for oil as compared with average realized sales prices during 1999 of $2.11 per Mcf and $17.79 per barrel, respectively. EBITDA for 2000 increased 26% to $12 million from $9.5 million last year. Operating cash flow also improved in 2000 to $8.6 million ($0.53 per diluted share), an increase of 14% from $7.5 million ($0.53 per diluted share) in 1999. Brigham reported net income of $16.3 million ($1.01 per diluted share) for 2000, which included a $32.3 million extraordinary gain on the refinancing of debt in the fourth quarter and $8.9 million in non-cash expenses related to changes in the fair market value of certain hedging contracts, as compared to a net loss of $21.6 million ($1.53 per diluted share) for 1999, which included a $12.2 million non-cash loss on the sale of oil and gas properties and $115,000 in non-cash expenses related to changes in the fair market value of certain hedging contracts. Excluding these non-cash items, Brigham's net loss for 2000 would have been $7.0 million ($0.43 per diluted share), as compared to a net loss of $9.3 million ($0.66 per diluted share) for 1999. For the year, Brigham incurred capital costs of $25.3 million, which consisted of $18.5 million for drilling, $583,000 on land and G&G activities (net of proceeds from project sales), and $6.3 million for capitalized interest and overhead expenses. MANAGEMENT COMMENT Bud Brigham, the Company's chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and president, stated, "Our drilling program in 2000 generated some exciting results, particularly our two significant field discoveries in the Anadarko Basin. These two discoveries, combined with our late 1999 Home Run Field discovery in the Texas Gulf Coast, provides our company with a growing portfolio of low risk, yet high return development drilling. We are also pleased with our average drilling cost of $0.62 per Mcfe over the past two years. This operational metric is particularly attractive considering that a significant percentage of our capital was spent on drilling previously booked proved undeveloped locations. Another indication of our recent drilling success is that every $1 we invested in drilling in 2000 generated over $4.50 in proved developed PV10% reserve value, using recent strip pricing." Mr. Brigham further stated, "Recent production additions did not materially impact the fourth quarter 2000. In addition, debt levels and our hedge position significantly limited our cash flow expansion in 2000. However, our cost structure is significantly improved in 2001, in part due to $20 million in debt reduction. Realized natural gas prices should increase as our average hedge price improves and the percentage of our production that is hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. declines. As a result, we expect a substantial improvement in our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in 2001, beginning with record levels for production and cash flow in the first quarter of 2001." CONFERENCE CALL INFORMATION Brigham management will host a conference call to discuss the Company's year-end 2000 financial and operational results with investors, analysts and other interested parties on Wednesday Wednesday: see week. , March 7th, at 9:00 a.m. Central time. To participate in the call, please dial 888/882-0119 and ask for the Brigham Exploration conference call (conference identification number 18091206). A recording of the conference call will be available to interested parties approximately one hour after the call is completed through 11:00 a.m. Central time on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 9th. To access the recording, please dial 800/633-8284 and enter 18091206 as the conference playback Playback could mean:
ABOUT BRIGHAM EXPLORATION Brigham Exploration Company is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. domestic natural gas and oil provinces. For more information about Brigham Exploration, please visit our Web site at www.bexp3d.com or contact Investor Relations Investor relations The process by which the corporation communicates with its investors. at 512/427-3444. FORWARD LOOKING STATEMENTS DISCLOSURE Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward looking statements include risks inherent in exploratory drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, land issues, federal and state regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments and other risks more fully described in the company's filings with the Securities and Exchange Commission.
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
---------------------- ------------------------
1999 2000 1999 2000
---------- ---------- ---------- ------------
Revenues:
Natural gas and
oil sales $ 4,096 $ 4,641 $ 14,992 $ 19,143
Workstation revenue 38 1 285 53
---------- ---------- ---------- ------------
4,134 4,642 15,277 19,196
Costs and expenses:
Lease operating 580 637 2,259 2,139
Production taxes 283 533 968 1,786
General and
administrative 771 934 3,481 3,100
Depletion of natural
gas and oil
properties 1,982 2,129 7,792 7,920
Depreciation and
amortization 127 133 525 507
Amortization of
stock compensation 11 57 1 113
---------- ---------- ---------- ------------
3,754 4,423 15,026 15,565
---------- ---------- ---------- ------------
Operating income
(loss) 380 219 251 3,631
Interest expense (2,727) (809) (9,697) (9,906)
Interest income 42 28 176 108
Other income
(expense) (a) 111 (3,222) (163) (9,488)
Loss on sale of
natural gas and oil
properties -- -- (12,195) --
---------- ---------- ---------- ------------
Net loss before
income taxes (2,194) (3,784) (21,628) (15,655)
Income tax expense -- -- -- --
-
---------- ---------- ---------- ------------
Net loss before
extraordinary item (2,194) (3,784) (21,628) (15,655)
Extraordinary gain on
refinancing of debt -- 32,267 -- 32,267
---------- ---------- ---------- ------------
Net income (loss) (2,194) 28,483 (21,628) 16,612
Preferred stock
dividend expense -- 275 -- 275
---------- ---------- ---------- ------------
Net income (loss) to
common $ (2,194) $ 28,208 $ (21,628) $ 16,337
========== ========== ========== ============
Net income (loss) to common per share -- basic/diluted:
Before extraordinary
gain $ (0.15) $ (0.25) $ (1.53) $ (0.98)
After extraordinary
gain $ (0.15) $ 1.74 $ (1.53) $ 1.01
Wt. avg. common shares outstanding --
basic/diluted 14,518 16,252 14,152 16,241
(a) Includes non-cash income (expenses) related to changes
in the fair market value of certain hedging contracts
of: $ 119 ($3,202) ($115) ($8,885)
BRIGHAM EXPLORATION COMPANY
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
---------------------- ------------------------
1999 2000 1999 2000
---------- ---------- ---------- ------------
Avg. net daily production:
Natural gas (MMcf) 11.1 13.0 11.7 12.3
Oil (Bbls) 887 900 960 1,004
Equivalent natural gas
(MMcfe) (6:1) 16.5 18.4 17.4 18.3
Total net production:
Natural gas (MMcf) 1,003 1,174 4,197 4,431
Oil (MBbls) 80 81 346 362
Equivalent natural gas
(MMcfe) (6:1) 1,482 1,660 6,270 6,600
% Natural gas 68% 71% 67% 67%
Sales prices:
Natural gas ($/Mcf)
(a) $ 2.22 $ 1.85 $ 2.11 $ 1.94
Oil ($/Bbl) $ 23.38 $ 30.48 $ 17.79 $ 29.17
Equivalent natural gas
($/Mcfe) (6:1) $ 2.76 $ 2.80 $ 2.39 $ 2.90
Other financial data:
EBITDA ($000) (b) $ 3,293 $ 2,546 $ 9,456 $ 11,956
Operating cash flow
($000) (c) $ 2,757 $ 2,033 $ 7,532 $ 8,581
Operating cash flow
per diluted share
(c) $ 0.19 $ 0.13 $ 0.53 $ 0.53
(a) Includes the effects of hedging gains (losses) of:
Natural gas ($/Mcf) ($0.48) ($3.63) ($0.12) ($2.12)
Oil ($/Bbl) $0.00 ($0.83) $0.00 ($0.30)
(b) Net income (loss) plus interest expense, DD&A expenses, deferred
income taxes and other non-cash items.
(c) Net income (loss) plus DD&A expenses, deferred income taxes and
other non-cash items.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands) (unaudited)
December December
31, 1999 31, 2000
------------- -------------
Assets:
Current assets $ 8,264 $ 10,673
Natural gas and oil properties,
at cost, net 112,066 129,490
Other property and equipment, at cost,
net 1,686 1,341
Other non-current assets 3,667 5,407
------------- -------------
Total assets $ 125,683 $ 146,911
============= =============
Liabilities and stockholders' equity:
Current liabilities $ 17,744 $ 17,899
Notes payable 56,000 75,000
Senior subordinated notes, net 41,341 7,000
Other non-current liabilities 1,600 3,697
------------- -------------
Total liabilities 116,685 103,596
Redeemable preferred stock -- 8,558
Stockholders' equity 8,998 34,757
------------- -------------
Total liabilities and stockholders'
equity $ 125,683 $ 146,911
============= =============
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
---------------------- ------------------------
1999 2000 1999 2000
---------- ---------- ---------- ------------
Cash flows from operating activities:
Net loss $ (2,194) $ 28,483 $ (21,628) $ 16,612
Depletion,
depreciation and
amortization 2,109 2,262 8,317 8,427
Interest paid
through issuance of
add'l sr. sub.
notes 1,431 -- 5,459 4,575
Amortization of
deferred stock
compensation 11 57 1 113
Amortization of
deferred loan fees 579 296 1,739 1,283
Amortization of
discount on senior
sub notes 181 -- 575 673
Amortization of
deferred loss on
derivatives 759 -- 759 280
Market value
adjustment for
derivatives
instruments (119) 3,202 115 8,885
Loss on sale of
natural gas and oil
properties -- -- 12,195 --
Extraordinary gain
on refinancing of
debt -- (32,267) -- (32,267)
---------- ---------- ---------- ------------
Operating cash flow 2,757 2,033 7,532 8,581
Changes in working
capital and other
items 240 (4,534) (4,954) (13,216)
---------- ---------- ---------- ------------
Cash flows (used)
provided by
operating
activities 2,997 (2,501) 2,578 (4,635)
Cash flows (used)
provided by investing
activities (4,468) (6,983) 1,644 (26,071)
Cash flows (used)
provided by financing
activities 832 10,261 (4,049) 28,801
---------- ---------- ---------- ------------
Net increase
(decrease) in cash
and cash
equivalents $ (639) $ 777 $ 173 $ (1,905)
========== ========== ========== ============
SUMMARY PER MCFE DATA
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
---------------------- ------------------------
1999 2000 1999 2000
---------- ---------- ---------- ------------
Revenues:
Natural gas and oil
sales $ 2.76 $ 2.80 $ 2.39 $ 2.90
Workstation revenue 0.03 0.00 0.05 0.01
---------- ---------- ---------- ------------
2.79 2.80 2.44 2.91
Costs and expenses:
Lease operating 0.39 0.38 0.36 0.32
Production taxes 0.19 0.32 0.15 0.27
General and
administrative 0.52 0.56 0.56 0.47
Depletion of natural
gas and oil
properties 1.34 1.28 1.24 1.20
Depreciation and
amortization 0.09 0.08 0.08 0.08
Amortization of stock
compensation 0.01 0.03 0.00 0.02
---------- ---------- ---------- ------------
2.54 2.65 2.39 2.36
---------- ---------- ---------- ------------
Operating income $ 0.25 $ 0.15 $ 0.05 $ 0.55
========== ========== ========== ============
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